18 October 2012, Sweetcrude, Lagos – Local and international financial market update.
Nigerian Foreign Exchange- Total amount offered and sold was $150mio at yesterday’s CBN WDAS session. The marginal rate was 157.3176 [inc. the 1% commission], just 1 point higher than the previous auction.
Nigerian Bonds – There was volatile session yesterday ahead of the auction. Demand fed into the market yesterday on the 16.39%, 2022s and the 15.10%, 2017s, which came off to mirror the sentiment of relatively stronger than expected demand at the auction. We might see a slight rally today but that will surely be met by some profit taking so the markets are set for a volatile post auction session.
Nigerian Treasury Bills – Light demand feeding into the short end. CBN offered OMO bills to the market but failed to sell anything
Nigerian Money Markets –OBB and unsecured O/N rates are averaging 12.00% & 13.75% to close today
EUR: The Euro held near a one-month high against the dollar as a fall in Spanish bond yields, strong US housing data and hopes for a year- end rebound in China boosted optimism on the global economy. The euro stood at $ 1.3107, little changed on the day , after having risen about 0.5 percent on Wednesday to as far as 1.3140- a high not seen since mid- September.
AUD– The Australian dollar hit multi-week highs against a broadly weaker yen on Thursday, underpinned by solid risk appetite as markets saw some encouraging signs in a batch of Chinese economic reports. The Aussie rose 0.2 percent to a 21/2 week high of $1.0397 extending Wednesday’s rally of more than 1 percent.
CNH: The Yuan market flattened out on Thursday, opening and trading at nearly identical levels to Wednesday’s intraday range. The Central bank also eased off, setting the official midpoint at 6.3021, a mere 7 pips firmer than Wednesday’s fix, after a series of radically stronger fixings that led some to speculate that Beijing was trying to pump up the currency to forestall criticism from US politicians.
Indicative Currency Exchange Rates
EURUSD 1.3060 1.3110
GBPUSD 1.6100 1.6150
USDJPY 78.75 79.25
USDCHF 0.9215 0.9265
GBPEUR 1.2290 1.2340
USDZAR 8.5800 8.5900
USDNGN 157.25 157.75
JPYNGN 1.9840 2.0035
CHFNGN 169.50 171.40
EURNGN 204.00 208.00
GBPNGN 251.50 255.50
ZARNGN 17.50 19.50
Brent Crude futures held steady above $113, buoyed by hopes for a rebound in year- end economic growth in China, the world’s second biggest oil consumer, with simmering tension in the Middle East providing additional support. Brent has gained 37 cents to $113.59 a barrel by 0635GMT, after settling 78 cents lower at $113.22. U.S. oil rose 7 cents to $92.19, after ending 3 cents higher.
NIBOR (%) LIBOR (%)
O/N 13.5833 USD 1 month 0.21170
7 Day 13.9167 USD 2 month 0.26425
30 Day 14.6667 USD 3 month 0.32075
60 Day 15.2083 USD 4 month 0.40110
90 Day 15.6667 USD 6 month 0.57040
USD 12 month 0.90550
Y/Y Consumer Inflation September 2012 : 11.3%
FX Reserves: 10 October 2012 (USD bn) 41.60
Source: Reuters Guardian, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.
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USD/NGN 157.5/65 157.35/45 157.50/60 157.43/53